Credit score & number of cards

Terri,

There is nothing you can do about the age of your accounts. If they are that young, I don't think running a balance will help or hurt. What will help is showing a positive trade line. Pay 'em off and use them to charge things that can be paid off a the end of the month. You will display a pattern of activity and at the same time, show a capacity to repay on time and as agreed. Over time, that wil generate credit limit increaeses and special offers.

 

Dear Keeper.. Thanks for sharing your knowledge. Someone had sort of guilded me w/ the rules you have posted. We are working to get there. Our TOTAL debt is 33%, of the CL's w/ in uses of 64%/57%/52% and 11%. It was recently that I remembered doing an OPT OUT about 6 years ago. I called equifax and had this removed.. so I am waiting for those offers to come now.

 

Thanks, Keepmine. I am working on it, but don't have much time for aging. Need the best score I can muster soon to buy a house.

 

You can always charge something if your score doesn't improve enough.

 

Good point Breeeze!

 

Doc... simple... I'm missing the sourcing for your scoring information you posted. It could come from anywhere. That's hogwash about closing accounts! Every FICO report will always find 4 reasons that you score would be higher even if it was 875. Do you think Donald Trump closes accounts that he doesn't use? NOPE! Do you think he has too many accounts? NOPE! Seems like the biggest impact to scores are chargeoff/collections/late pays. If your file is clear of those, it THE RATIOS that matter the most. You don't close accounts you're not using because it will lower your available credit ratios and hurt your scores. Pretty simple.... You need to keep things open and clean as long as possible, always ask for credit limit increases even if you don't need them and have a mix of credit/charge/loans/mortgages to get the best scores.

 

Please describe how you obtained the information you copied and pasted, Doc.

 

Doc, the number of credit cards one of two issues I chose to use for the background of creditscoring.com (the other was disclosure of the score to consumers)(see "Letters"). I came to no conclusion, and I'm curious as to Wothknowing's source of their advice regarding having less than 5 cards.

Some FICO reasons from http://www.facredco.com/HTML files/...res/FICO_Credit_Score/FICO_credit_scor_2.html :

Number of revolving accounts
Number of bank revolving or other revolving accounts
Too few bank revolving accounts
Too many bank or national revolving accounts
Number of bank or national revolving accts with balances
No recent bankcard balances


Of course, there are any number of iterations of ratios of number of cards to aggregate limit; I know of know definitive answer as to the optimum.

It may have something to do with a dart board.

 

LOL. That's cute. The scores that come up sure would make one wonder about that now don't they?

 

Excellent information G. Fisher. Does anyone know what these are all about?

Lack of recent installment loan information
Lack of recent auto loan information
Lack of recent auto finance loan information
Lack of recent consumer finance company account information

I just picked them from the list, but it sounds like you get dinged if you don't have an installment/auto loan - or perhaps if your loan doesn't report regularly? Anyone actually seen one of these on a report?

Myschae

 

----------------------------
Score . . . What It Means
----------------------------
425 . . . deadbeat
525 . . . trouble
625 . . . on the mend
725 . . . WAY TO GO!
825 . . . sucker <-----------------------------?????????
----------------------------
So I should shoot for 824???? no higher???

 

You read all types of scenerios of how many is too many and how many is not enough etc. But it all boils down to debt ratios and having no delinquencies, these 2 items account for 65% of your score. I have seen some have 15+ cards, low ratios, no negs and stay in the 700 club, there are also others that have 5 cards, no negs and they too are in the 700 club.

I helped my friend establish credit, she started in 99, she has 12+ cards very low balances, and no negs, her score is 750.

Ratios and a clean report are the key to high scores.

 

An excessive # of tradelines can & will KILL any credit (re)builder's score.

However, it does not seem to have a very negative effect on people whose credit report is otherwise great.

Doc - Helpful list. I'm interested to know if you have anything to support item #2. Some of the feedback here even suggests the contrary.


Saar

 

I like this explanation

http://www.ftc.gov/bcp/creditscoring/present/index.htm

 

This is supposed to be a "scorecard" for FICO. If you look at number of revolving tradelines listed, ideal is 1-2; if you have six or more you lose points. See, you limit your options, your score goes up. Provide yourself with more options, your score goes down.
Same with inquiries - shop for a better deal - wham! down you go!!


http://www.ftc.gov/bcp/creditscoring/present/sld008.htm

 

Breeze:

Seems to me that would make a lot of sense --- to an orangutan.

 

1 inquiry is better than 0...
A brand new job is better than 2 years...
30 & 60 days late is better than current...